Saudi Arabian fund invests more than $1bn in Lucid Motors

Saudi Arabia’s Public Investment Fund is investing in California-based Lucid Motors. (Reuters)
Updated 17 September 2018
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Saudi Arabian fund invests more than $1bn in Lucid Motors

  • Deal will provide funding to enable the commercial launch of Lucid’s first electric vehicle – the Lucid Air

DUBAI: Saudi Arabia’s Public Investment Fund (PIF) said on Monday it had agreed to invest more than $1 billion in Lucid Motors to produce electric vehicles.
The deal will provide funding to enable the commercial launch of Lucid’s first electric vehicle, the Lucid Air, in 2020.

The investment comes a few weeks after Tesla Inc. CEO Elon Musk said the Saudi sovereign wealth fund could help him fund a $72 billion deal to take his electric carmaker private, although bankers have cast doubt on it making a big investment.
Tesla’s shares fell 2.2 percent on news of PIF’s investment in Lucid.
The deal supports Saudi efforts to build an environmentally friendly economy, a goal outlined in its Vision 2030 plan to diversify the kingdom away from a reliance on oil.
“By investing in the rapidly expanding electric vehicle market, PIF is gaining exposure to long-term growth opportunities, supporting innovation and technological development and driving revenue and sectoral diversification for the Kingdom of Saudi Arabia,” a spokesperson for PIF said.
PIF has an interest in electric cars and earlier this year built a stake of just under 5 percent in Tesla by snapping up shares in the open market, rather than acquiring newly issued shares.
A PIF spokesperson declined to say whether it had invested in Tesla.
Obtaining cheap capital is a constant challenge for carmakers, which can spend $1 billion or more engineering a single new model.
Based in Newark, California, Lucid Motors was founded in 2007 as Atieva by Bernard Tse, a former Tesla vice president and board member, and Sam Weng, a former executive at Oracle Corp. and Redback Networks.
The funding, which will be made through a special-purpose vehicle wholly owned by PIF, will be used by Lucid to complete development and testing of the Lucid Air, construct a factory in Arizona and start up production of the car.
“The convergence of new technologies is reshaping the automobile, but the benefits have yet to be truly realized,” said Peter Rawlinson, chief technology officer of Lucid. “This is inhibiting the pace at which sustainable mobility and energy are adopted. At Lucid, we will demonstrate the full potential of the electric connected vehicle in order to push the industry forward.”
PIF has already made substantial commitments to other environmentally friendly projects, including renewables and recycling, and to technology companies or investments, including a $45 billion agreement to invest in a giant technology fund led by Japan’s SoftBank Group Corp.


How KAUST is transforming waste into wealth

Updated 09 January 2026
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How KAUST is transforming waste into wealth

  • Researchers target $275m market with waste-to-value algae innovation

RIYADH: Turning food waste into a valuable industrial product may sound improbable, but scientists at King Abdullah University of Science and Technology are proving it is possible — using algae that has existed for millions of years. 

Last month, researchers at the university unveiled a sustainable method that harnesses an ancient red microalga to reduce food waste in the Kingdom while producing a high-demand natural pigment.

The study was led by bioengineering student Mauricio Masson, with support from Michael Fox, assistant professor of marine science, alongside researchers from KAUST and the Arizona Center for Algae Technology and Innovation. The international team included Kyle Lauersen, KAUST associate professor and lead author of the study.

Scientists at King Abdullah University of Science and Technology (KAUST) developed a sustainable method to use an ancient type of algae while reducing food waste in the kingdom. (Supplied)

The research highlights a “sustainable bioprocessing” approach, demonstrating how an aquatic plant can convert chocolate factory waste into C-phycocyanin — a blue pigment with a global market expected to reach $275 million over the next four years.

“Our research focused on an extremophilic red alga that can thrive in harsh conditions and efficiently consume sugars and nutrients found in food waste streams,” said Lauersen.

Lauersen is an associate professor and chair of the bioscience and bioengineering programs in the Biological and Environmental Sciences and Engineering Division at KAUST. He explained that a key objective of the study was to show that food waste — often discarded or sent to landfills — can be repurposed as a feedstock for producing high-value compounds, including natural pigments and proteins, through algae-based bioprocesses.

“Our main goal was to develop an environmentally friendly approach to turn waste into useful products that have the potential to be scaled,” Lauersen told Arab News.

FASTFACT

Did you know?

• By 2030, the global market for C-phycocyanin is projected to exceed $275 million, reflecting growing demand across food, health, and industrial sectors.

• C-phycocyanin has demonstrated potential benefits in antioxidation, inflammation, cancer research, antimicrobial activity, neurodegeneration, diabetes management, and wound healing.

• As a natural pigment, C-phycocyanin offers a healthier alternative to synthetic food colorants and is approved by the US FDA for use in food products.

He added: “Algae are especially well suited for this because they grow quickly, require relatively few resources, and can metabolize a wide range of organic compounds.”

The red microalga Galdieria yellowstonensis feeds on chocolate waste rich in residual sugars, producing a protein-dense biomass that contains C-phycocyanin, according to KAUST. The pigment is widely used as a natural food coloring — found in products such as ice cream and blue-colored beverages — as well as in cosmetics and pharmaceuticals.

Beyond the study’s original goals, researchers also discovered that elevated levels of carbon dioxide significantly enhance algae growth, even though CO₂ is typically considered a byproduct of microbial sugar consumption.

Another major outcome of the research is its potential to reduce land pollution by transforming food waste into a nutrient source for algae, offering a sustainable alternative to disposal. 

Galdieria yellowstonensis feeds on chocolate waste containing residual sugar, producing a protein-packed biomass that includes C-phycocyanin. (Supplied)

KAUST believes the findings could positively impact Saudi Arabia’s economy by helping food manufacturers lower production costs while addressing environmental concerns.

“The species we studied can grow on waste streams that are unsuitable for conventional crops or microorganisms,” said Lauersen.

“This makes algae an attractive platform for circular economy solutions, where waste is transformed directly into valuable materials rather than being treated as a disposal problem.”

The research effort is ongoing. Scientists at KAUST are currently collecting chocolate waste locally and plan to scale up the process using other industrial waste streams available across the Kingdom. The initiative aims to support companies in transitioning toward a circular carbon economy while contributing to Saudi Arabia’s green agenda.

“Food waste is a major global challenge, contributing to greenhouse gas emissions, resource inefficiency, and environmental degradation,” said Lauersen.

“By recycling waste into useful products, we can reduce pressure on landfills, lower emissions, and make better use of existing resources.”

“These types of solutions are essential as industries worldwide face growing demands to become more sustainable and climate resilient, especially in the Middle East, which relies on heavily on imports.”